This is in accordance with the Article 1 of Decree No. (43) of 2013 Determining Rent Increase for Real Property in the Emirate of Dubai
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“When renewing real property rent contracts, the maximum percentage of rent increase for real property in the Emirate of Dubai shall be as follows:
a. No rent increase, where the rent of the real property unit is up to 10 per cent less than the average rental value of similar units;
b. 5 per cent of the rent of the real property unit, where the rent is 11 per cent to twenty per cent less than the average rental value of similar units;
c. 10 per cent of the rent of the real property unit, where the rent is 21 per cent to 30 per cent less than the average rental value of similar units;
d. 15 per cent of the rent of the real property unit, where the rent is 31 per cent to 40 per cent less than the average rental value of similar units;
e. 20 per cent of the rent of the real property unit, where the rent is more than 40 per cent less than the average rental value of the similar unit.”
The average rental value refers to the average rent for similar properties in Dubai. The average is determined in accordance with, the "Rent Index of the Emirate of Dubai," which is approved by the Real Estate Regulatory Agency (Rera).
This is in accordance with the Article 3 of the Dubai Rent Increase Law.
“For the purposes of application of Article (1) of this Decree, the average rental value of similar units shall be determined in accordance with the“Rent Index of the Emirate of Dubai” approved by the Real Estate Regulatory Agency.”
Furthermore, the rent increase and decrease related to residential properties in Dubai is decided by the Rera.
Article 10 of the Law No. 26 of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai states that“Rera shall have the authority to establish criteria relating to the percentage of rent increase in the Emirate in line with the requirements of the prevailing economic situation in the Emirate.”
When renewing a rent contract, both a landlord and a tenant may discuss and change the terms, including the rent, before the existing lease expires. If they can't agree, the tribunal may decide what the fair rent should be, based on specific criteria.
Additionally, if either party wants to make changes to the rent terms, they must notify the other party at least 90 days before the rent ends, unless they have agreed otherwise.
This is in accordance with the Article 13 and 14 of the Law No. 33 of 2008 Amending Law No. 26 of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai.
“Article 13
For the purposes of renewing a rent contract, the landlord and tenant may, prior to the expiry of the rent contract, amend any of its terms or reconsider increasing or reducing the rent. If the landlord and tenant fail to reach an agreement in this regard, the Tribunal may determine the fair rent, taking into account the criteria stipulated in Article (9) of this Law.”
“Article 14
Unless otherwise agreed by the parties to a rent contract, where either party wishes to amend any of its terms pursuant to Article (13) of this Law, that party must notify the other party of this intent no less than ninety (90) days before the date on which the rent contract expires.”
In accordance with the aforementioned provisions of law, you as a landlord may increase the rent by giving written notice to your tenant at least 90 (ninety) days prior to renewal of the rental period.
However, as a landlord, you may only increase the rent of the rented property if the Rera index permits increment of rent. In the event of disagreement with your tenant, you may approach the Rental Dispute Centre to decide on increasing the rent of your rented property.
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: Readers may e-mail their questions to: ... or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.